Fed’s Barkin: Inflation is coming down
Richmond Federal Reserve President Thomas Barkin remarked on Wednesday that December’s US inflation data suggests price pressures are continuing to ease. His comments came after a government report revealed that a key underlying measure of price increases had slowed during the month.
Key Quotes
Inflation is coming down towards 2% target
Says he can see paths where inflation is sticky or continues to progress towards target
Says he was encouraged by the unemployment rate in December
Seems the job market has stabilized
Not much to support arguments that the economy is growing weaker
Says he is not concerned about overheating economy right now; demand is solid but not booming
Long rates right now are consistent with early 2000s, which was not a restrictive time for business
Says he has not seen anything in long rates that would influence Fed policy at this point
Regarding incoming Trump administration's policies, the direction of travel may be clear on things like tariffs but the details are not
Businesses generally saying that price-setting behavior is moving to pre-pandemic patterns
Forex News
Keep up with the financial markets, know what's happening and what is affecting the markets with our latest market updates. Analyze market movers, trends and build your trading strategies accordingly.
